Blogs

Search Blogs
Search by date
Choose From Date
Choose To Date
SearchClear

"Inspirational Shopping" Does Not Create Income Tax Nexus in New York

By Mary Alexander and Andrew Appleby

The New York State Department of Taxation and Finance determined that a women’s apparel company’s

April 29, 2013

By Mary Alexander and Andrew Appleby

The New York State Department of Taxation and Finance determined that a women’s apparel company’s “inspirational shopping” trips were not sufficient to be considered “doing business” in the state for corporate franchise tax purposes. Petitioner was a traditional remote seller headquartered outside of New York. Petitioner’s employees occasionally traveled to New York for two to three days to meet with potential merchandise vendors and to go on “inspirational shopping” trips, but Petitioner did not have any sales representatives promoting or soliciting sales in the state. As of May 31, 2008, Petitioner had also terminated its online web affiliate linking program with New York-based web affiliates. Although a “close question,” the Department concluded that, pursuant to Section 1-3.2 of the Business Corporation Franchise Tax Regulations, Petitioner’s occasional trips did not rise to the level of “doing business” in the state. However, the Department noted that if Petitioner was engaged in solicitation activity protected by Public Law 86-272, as well as the occasional trips, then Petitioner would be considered to be “doing business” in New York. N.Y. Adv. Op. TSB-A-13(6)C (Apr. 11, 2013).

Our Story

Sutherland Asbill & Brennan LLP is an international law firm helping the Fortune 100, industry leaders, sector innovators and business entrepreneurs solve their biggest challenges and reach their business goals. Dedicated to unfaltering excellence in client service, we are known for our business savvy and industry intelligence, providing creative and custom solutions for each of our clients. Industry and business experience makes the difference for our clients.

click to watch Videocast: DOL Fiduciary Rule Litigation Impacts
Videocast: DOL Fiduciary Rule Litigation Impacts
Atlanta, GA
Washington, DC
© 2016 Sutherland Asbill & Brennan LLP / Sutherland (Europe) LLP
MYBRIEFCASE
Add this page to MYBRIEFCASE
Add Page to MYBRIEFCASE
News/Commentary - "Inspirational Shopping" Does Not Create Income Tax Nexus in New York
Current MYBRIEFCASE Pages
Save ChangesDownload MYBRIEFCASEClear All